Fancy Plates artisan studio cost accounting case study acct 202

Fancy plates artisan studio manufactures unique pottery plates. They sell and ship their unique plates to all Saudi cities. Fancy plates is currently reviewing their production data for a new product for summer 2023 season. The management ofFancy plates needs your help to prepare a budgeted figure for this new product.

The owner Fancy plates has provided the following data:

Budgeted sales for the next five months are as follows:

April	May	June	July	August	September
350	500	400	300	450	120

Unit selling price SR 130

Fancy plates needs the finished closing stock equals to 5 + 25% of the following months budgeted sales in units.

Each block of clay can make 4 units, each block of clay costs SR 50. Fancy plates would like the raw materials closing stock equals to 40 blocks,and at the end of April Fancy plates has 40 Blocks of clay.

2 labor hours are required for each unit produced, each hour costs SR 25 and will be paid as incurred.

Unit variable manufacturing overhead is SR 15 per unit, and fixed manufacturing overhead cost is SR 350 per month will be paid as incurred.

75% of sales are for cash. 25% are on credit and customers pay half of their debt in the month following sale and the balance one month after that.

The Blocks of clay is paid for one month after purchase.

The closing balances at the end of March is SR 10,000.

Fancy plates pays a cash dividend of SR 3,000 inJune.

Requirement:

Using the data given above, prepare the following budgets along with other supportive schedules for the quarter (June July August) of the year 2023.

Sales Budget

Production Budget.

Cash budget